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cpa - audit > AUD - Ratios > Flashcards

AUD - Ratios Flashcards

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CPA flashcards
1
Q

What are liquidity ratios?

A

liquidity ratios are measures of a firm’s short term ability to pay maturing obligations

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2
Q

What are activity ratios?

A

they are measures of how effectively an enterprise is using its assets

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3
Q

What are profitability ratios?

A

they measure the financial performance of an enterprise for a given time period

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4
Q

What are investor ratios?

A

they are measures that are of interest to investors

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5
Q

What are coverage ratios?

A

they are measures of security for long term creditors and investors

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6
Q

What is the current ratio?

A

It is current assets divided by current liabilities

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7
Q

What is the quick ratio?

A

Cash and cash equivalents + short term marketable securities + receivables (net) divided by current liabilities

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8
Q

What accounts receivable turnover?

A

Sales (net) divided by Average AR (net)

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9
Q

What are Days sales in AR?

A

Ending AR (net) divided by (sales/365)

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10
Q

What is Inventory Turnover?

A

COGS divided by average inventory

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11
Q

What is Days in inventory?

A

Ending Inventory divided by (COGS/365)

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12
Q

What accounts payable turnover?

A

COGS / Average AP

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13
Q

What is Days of payables outstanding?

A

Ending AP divided by (COGS/365)

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14
Q

What is the cash conversion cycle?

A

Days sales in AR + Days in inventory - Days of payables outstanding

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15
Q

What is asset turnover?

A

sales (net) divided by average total assets

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16
Q

What is profit margin?

A

Net Income / Sales(net)

17
Q

What is Return on assets?

A

Net Income divided by Average total assets

18
Q

What is Return on Sales?

A

EBIT / Sales (net)

19
Q

What is the return on equity?

A

Net Income / average total equity

20
Q

What is operating cash flow ratio?

A

CF from Ops / Ending Current Liabilities

21
Q

What is Basic EPS?

A

Income to C/S divided by Weighted average common shares outstanding

22
Q

What is the Price earnings Ratio?

A

Price per share / basic earnings per share

23
Q

What is dividend payout?

A

Cash dividends / net income

24
Q

What is debt to equity?

A

total liabilities / total equity

25
Q

What is total debt ratio?

A

total liabilities / total assets

26
Q

What is the equity multiplier?

A

total assets / total equity

27
Q

What is times interest earned?

A

EBIT / Interest Expense OR Income before Interest Expense and Taxes/Interest Expense

cpa - audit (8 decks)

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